BP Amoco 2nd-Quarter Profit Leaps 164%

BP Amoco posted a 164% jump in second-quarter profit to $3.6 billion, or 17 cents a share, thanks to higher oil and gas prices, better refining margins and continued cost savings. Earnings from Atlantic Richfield Corp., which BP Amoco acquired in April, also contributed to the performance. London-based BP Amoco said it trimmed costs by $1 billion by merging with Arco, achieving half of its annual target for cost savings. It spent $2.4 billion on capital expenditures, up 35% from last year. Operating profit for exploration and production, BP’s biggest line of business, climbed 112% to $3.12 billion, benefiting from higher oil prices and a 51% surge in the volumes of gas sold. Operating profit for the refining and marketing business jumped 128% to $1.28 billion. Refining margins were especially strong in the United States, due to higher gasoline prices. BP’s American depositary receipts fell $2.44 to close at $52.75 on the New York Stock Exchange.